Flashcards in Mod 28 Wrong Answers Deck (17):
3 parties in draft
A draft is a three party instrument where a drawer...
Orders a drawee (bank) to pay a fixed amount in money to the
A draft is not...
Payable on demand (a check is payable on demand)
Blank endorsement 2
1 does not specify any endorsee
2 converts order paper to bearer paper
Indicates the specific person to whom the endorsee wishes to negotiate the instrument
Use of a special endorsement converts...
The order paper into bearer paper
What kind of endorsement does not specify any endorsee?
An endorsement that indicates a specific person to whom the instrument is being negotiated is...
A special endorsement
Disclaims liability by signing recourse
In order for an instrument to qualify as a check, the instrument must...
Be payable on demand
A special endorsement states...
"Pay to name"
"If he completes" is a phrase found in...
Found in a restrictive endorsement
A party who found an instrument payable to bearer is...
2) but not...
2) but not a holder in due course
To be a holder in due course he must...
Obtain a negotiable instrument from a holder in due course
When a negotiable instrument is found, it cannot be established that the...
Previous holder was a holder in due course
When a party receives an instrument with a notice of defense from a holder in due course, he does...2
1 Obtain the rights of a holder in due course
2 but can't be holder in due course himself because notice of